If the Price Elasticity of Demand Coefficient Equals 2 Then

question 117

Multiple Choice

If the price elasticity of demand coefficient equals 2 then:

• A) a 7 percent decrease in the price will result in a 14 percent decrease in the quantity demanded.
• B) a price decrease will increase total revenue.
• C) the good has an inelastic demand.
• D) there is likely few substitutes, a short time period under consideration, or this good accounts for a relatively small percentage of consumers' budgets.

---

Definitions:

Personal Characteristics

Attributes or features that define an individual, including traits such as personality, attitudes, and abilities.

Individualism

A theory advocating for individual action freedom over group or governmental authority.

Collectivism

A cultural value that emphasizes the priority of group goals over individual goals and the importance of cohesion within social groups.

Gender Typing

The process by which individuals learn to behave in a way that is consistent with societal expectations for their gender.